insurance or other department of any state of the United States, or in the hands of trustees, resident in and citizens of such states, for the general benefit and security of all policyholders residing in the United States, securities approved by the insurance commissioner of the value of two hundred thousand dollars, which have been at all times available for the payment of losses in this commonwealth, the tax upon the premiums of such company shall be assessed at the rate of two per cent." 23 Life insurance companies, whether domestic or foreign, pay one-quarter of one per cent. on the net value of all policies in force at the end of the preceding year issued or assumed by such company and held by residents of the Commonwealth.24

In New Jersey, domestic life insurance companies pay % of one per cent. on their total gross premiums, and one per cent. on their surplus.25 Foreign life insurance companies are merely subject to a retaliatory tax.26 Domestic insurance companies other than life, pay a franchise tax of one per cent. on their gross receipts; 27 while similar foreign companies pay 2% on their gross receipts within the State.2

28

In Pennsylvania domestic insurance companies (except purely mutual and beneficial associations) pay a tax of eight mills on the dollar on the gross amount of premiums received from business transacted within the State.29 In the case of fire and marine insurance companies the rate shall be three mills on each dollar of the actual value of the whole capital stock.30 Foreign insurance companies pay a tax of two per cent. on all premiums received from business done within the State."1

23 Ibid. § 29.

24 Ibid. § 24.

25 N. J. Gen. Stat. p. 1780, § 184.

26 Ibid. § 183.

27 Ibid. p. 3337, § 260.

28 Ibid. p. 1744, § 3.

29 Pa. 1889, P. L. p. 433, § 24; 1895, P. L. p. 408, § 1.

30 Pa. P. L. 1893, p. 353, § 1.

31 Pa. 1873, P. L. p. 26, § 10; 1889, P. L. p. 420, § 24.

594. Combination of ordinary tax and tax on receipts.

In several States there is a combination of the ordinary corporation tax and the tax on receipts. Thus in California foreign insurance companies other than life pay two per cent. of the gross premiums upon business done in the State.32 Other companies pay no different tax from ordinary corporations. In Connecticut foreign insurance companies pay two per cent. on their gross premiums received from business done in the State.33 Domestic stock companies are taxed like other corporations. Domestic mutual companies are taxed on their assets, deducting ascertained and unpaid losses, real estate (which is taxed separately), and bonds which are exempt. Mutual fire companies pay three-fourths of one per cent. and mutual life companies one-fourth of one per cent. on the balance. This is in lieu of all taxes except on real estate.34

In Illinois domestic insurance companies are taxed like other corporations; 35 but foreign insurance companies are taxable upon their gross receipts. "Every insurance company or association, other than life, organized or incorporated under the laws of any other state or nation, and every other insurance company, other than life, whose charter may be owned, or a majority of whose stock may be controlled, or whose business shall be carried on in the interest or for the benefit of any insurance company or association incorporated under the laws of any other state or nation, shall at the time of making the annual statements as required by law, pay to the insurance superintendent as taxes, two per cent. of the gross amount of premiums received by it for business done in this state, including all insurance upon property situated in this state, during the preceding calendar year. The payment of said taxes shall be a condition precedent to the privilege of doing business in this state. Upon compliance with the laws of this state and

32 Cal. Polit. Code, § 622 a. 33 Conn. Gen. Stat. § 2452.

34 Ibid. §§ 2444-2447.

35 Ill. Rev. Stat. ch. 120, §§ 13, 33.

the payment of said taxes, the insurance superintendent shall issue the annual certificate as provided by law, and the taxes provided in this act shall be in full for all taxes, state and local, against such corporations or associations, except taxes on real estate, and such reciprocal tax as is required by law; provided, where fire insurance companies pay into cities and villages, that have an organized fire department, a tax of two dollars or less, on every $100 of premiums received by the company, in such city or village, said amount shall be deducted from the amount to be paid to the insurance superintendent by provisions of this act." 36 This tax "is both a license fee for doing business in this state and a state tax, and evidently has the effect, if the act is constitutional, of superseding the tax on net receipts and all personal property taxes, except as otherwise provided in the act itself, notwithstanding the later act does not contain any repealing clause." 37

So far as this is a restraint on local taxation it is unconstitutional.38

In Nebraska fire insurance companies are taxed upon the gross receipts as upon ordinary property, as are fraternal and other insurance companies not carried on for profit; life, accident, and surety companies pay a tax of two per cent. of the gross receipts from business done within the State.39 But this has been held not to be in lieu of but in addition to taxation of their tangible property.40

In Ohio domestic insurance companies are taxed like ordinary corporations.41 Foreign companies pay the same tax upon all their property within the State,42 and also a franchise tax of two and a half per cent. on their gross receipts in the State, deducting "in the case of regular companies, wherein

38 Ibid. ch. 73, § 30.

37 Carter, J., in Raymond v. Hartford Ins. Co., 196 Ill. 329, 63 N. E. 745. 38 Raymond v. Hartford Fire Ins. Co., 196 Ill. 329, 63 N. E. 745.

39 Neb. 1903, ch. 73, §§ 58-61.

40 State v. Fleming, (Neb.) 97 N. W. 1063.

41 Oh. Rev. Stat. § 2744.

42 Western Assur. Co. v. Halliday, 127 Fed. 830.

policy holders participate in the surplus and earnings of the company, dividends or surplus from previous payments allowed and used in the payment of current premiums, cancellation or surrender values, and commission paid to the citizens of this state, during the same period for which receipts are reported." 43

In Vermont a life insurance company incorporated under the laws of this State shall in addition to the tax assessed by the second preceding section pay a tax to the State which is hereby assessed at the rate of one per cent. on the total admitted assets of such company after deducting therefrom the necessary reserve on all existing policies computed according to the laws of this State and certified to the commissioner of State taxes by the insurance commissioners; the reserve actually set apart by said company to fulfil the terms of any policy or contract of insurance providing for an annuity, life rate endowment, or trust fund; the value of all its real estate situated in this state or elsewhere upon which said company pays taxes to the town, city or county wherein it is located; all unadjusted death claims, matured endowments, non-forfeited cash surrender values, dividends, and annuity payments, accrued but not paid; premiums paid in advance; taxes assessed upon real estate but not paid; taxes on premiums accrued but not paid; and all other accrued liabilities including current expenses.44

In West Virginia domestic insurance companies are assessed upon their property like other owners of property; but stock notes of such companies are not assessed. Foreign insurance companies pay an annual license tax as follows: fire insurance companies, one-fourth of one mill on each dollar; life and accident insurance companies, one and one-half mills on each dollar; other insurance and guaranty companies, one-tenth of one mill on each dollar.45

43 Oh. Rev. Stat. § 2745; not unconstitutional, because not an additional tax on property but a franchise tax, Western Assur. Co. v. Halliday, supra. 44 Vt. Stat. 1902, Act 20, § 38.

45 W. Va. Code, ch. 34, §§ 6, 13.

§ 595. Combination of tax on receipts and license fees.

In North Carolina the tax is as follows:

"The officer authorized to collect the tax on insurance, bond and investment companies, associations or orders, shall collect and pay into the State Treasury charges, fees and taxes as follows: For each license issued to a life insurance company or association, $250.00; for each license issued to a fire insurance company or association or to any company or association of companies operating a separate or distinct plant of agencies, $200.00; for each license issued to an accident insurance company or association, $200.00; for each license issued to a marine insurance company or association, $200.00; for each license issued to a surety insurance company or association, $100.00; for each license issued to a plate glass insurance company or association, $100.00; for each license issued to a boiler insurance company or association, $100.00; for each license issued to a domestic mutual insurance company, $50.00; for license issued to a domestic mutual insurance company, operating in not more than two counties, $10.00; for license issued to a fraternal order, $25.00; for license issued to a bond, investment, dividend, guarantee, registry, title guarantee or debenture company, $100.00; for each license issued to all other insurance companies or associations, $100.00. All of said companies shall pay a tax of 2 per centum upon the amount of their gross receipts in this State; Provided, that if any general agent shall file with the Insurance Commissioner a sworn statement showing that at least one-fourth of the entire assets of his company, when his company has assets, are invested in and are maintained in any or all of the following securities or property, viz.: bonds of this State, or of any county, city or town of this State, or any property situated in this State and taxable therein, then the tax shall be one per centum upon the gross receipts aforesaid, and the license fee shall be one-half that named above, and if the amount so invested shall be three-fourths of the total assets, the tax shall be one-fourth of one per centum and the license fee one-fourth of that named above. Companies paying the